<PAGE>
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(MARK ONE)
(X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarter ended June 30, 1996
(_) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
Commission File Number 0-27872
MAY & SPEH, INC.
(Exact name of registrant as specified in its charter)
Delaware 36-2992650
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
1501 Opus Place, Downers Grove, Illinois 60515
(Address of principal executive offices) (Zip Code)
(630) 964-1501
(Registrant's telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.
Yes X No
------- -------
Indicate the number of shares outstanding of each of the issuer's classes
of common stock, as of the latest practicable date.
Class Outstanding as of August 14, 1996
Common Stock, par value $0.01 24,934,154
per share
<PAGE>
MAY & SPEH, INC.
INDEX
Part I -- Financial Information Page
Item 1. Financial Statements
Balance Sheets -- June 30, 1996 1
and September 30, 1995
Statements of Operations -- Three and nine months 2
ended June 30, 1996 and June 30, 1995
Statements of Stockholders' Equity -- Nine months 3
ended June 30, 1996
Statements of Cash Flows -- Nine months ended
June 30, 1996 and June 30, 1995 4
Notes to Financial Statements 5
Item 2. Management's Discussion and Analysis of Financial Condition 6
and Results of Operations
Part II -- Other Information
Item 6. Exhibits and Reports on Form 8-K 10
<PAGE>
PART 1--FINANCIAL INFORMATION
Item 1. Financial Statements
May & Speh, Inc.
Balance Sheets
<TABLE>
<CAPTION>
June 30, 1996 September 30, 1995
(unaudited)
<S> <C> <C>
Assets
Current assets:
Cash and cash equivalents $ 31,579,656 $ 6,713,581
Marketable securities 18,542,827 1,888,670
Accounts receivable, net 18,783,664 15,393,701
Prepaid software royalties and
other current assets 3,437,160 3,547,092
Deferred income taxes 359,000 359,000
------------ -----------
Total current assets 72,702,307 27,902,044
Property, plant and equipment, net 29,793,010 16,975,813
Other assets 5,562,229 1,926,199
------------ -----------
Total assets $108,057,546 $46,804,056
============ ===========
Liabilities and stockholders' equity
Current liabilities:
Current maturities of long-term
debt $4,815,123 $3,359,295
Accounts payable 3,622,112 3,735,579
Accrued payroll and other expenses 5,785,534 4,288,607
------------ -----------
Total current liabilities 14,222,769 11,383,481
Long-term debt 22,901,252 16,860,312
Deferred income taxes 916,000 916,000
------------ -----------
Total liabilities 38,040,021 29,159,793
------------ -----------
Stockholders' equity:
Common stock 249,342 203,627
Additional paid-in capital 44,974,405 1,525,927
Retained earnings 30,733,583 23,636,456
------------ -----------
75,957,330 25,366,010
Unearned ESOP compensation (5,939,805) (7,721,747)
------------ -----------
Total stockholders'
equity 70,017,525 17,644,263
------------ -----------
Total liabilities and
stockholders' equity $108,057,546 $46,804,056
============ ===========
</TABLE>
See Accompanying Notes
<PAGE>
May & Speh, Inc.
Statements of Operations
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
June 30, June 30,
--------------------------------------------------------------------------
1996 1995 1996 1995
--------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net revenues $19,997,045 $16,138,531 $55,173,175 $45,718,613
Operating expenses:
Wages and benefits 5,817,365 5,351,291 17,459,244 15,671,007
Services and supplies 1,715,978 1,121,422 4,700,336 2,967,309
Rents, leases and maintenance 5,018,676 3,577,074 13,061,278 10,093,532
Depreciation and amortization 422,959 340,564 1,150,883 857,263
Other operating expenses 1,573,258 1,275,041 4,940,875 3,583,908
ESOP principal payments 593,981 611,202 1,781,942 1,799,338
---------- ---------- ---------- ----------
Total operating expense 15,142,217 12,276,594 43,094,558 34,972,357
---------- ---------- ---------- ----------
Operating income 4,854,828 3,861,937 12,078,617 10,746,256
Interest and other expense:
ESOP interest 159,779 260,656 477,962 252,582
Other (income) expense, net (388,353) 103,944 (162,472) 876,576
---------- ---------- ---------- ----------
Income before income taxes 5,083,402 3,497,337 11,763,127 9,617,098
Income taxes 2,016,400 1,305,500 4,666,000 3,589,500
---------- ---------- ---------- ----------
Net income $ 3,067,002 $ 2,191,837 $ 7,097,127 $ 6,027,598
========== ========== ========== ==========
Earnings per common share and common
equivalent shares outstanding $0.12 $0.10 $0.30 $0.29
Weighted average shares and common
equivalent shares outstanding 26,629,756 21,027,020 23,814,591 21,061,002
</TABLE>
See Accompanying Notes
<PAGE>
May & Speh, Inc.
Statements of Stockholders' Equity
For Nine Months Ended June 30, 1996
<TABLE>
<CAPTION>
Common Stock Additional Unearned Retained
Shares Amount paid-in-capital compensation earnings Total
<S> <C> <C> <C> <C> <C> <C>
Balance - September 30, 1995 20,362,657 $203,627 $1,525,927 ($7,721,747) $23,636,456 $17,644,263
Net income for the nine months 7,097,127 7,097,127
ended June 30, 1996 (unaudited)
ESOP compensation earned 1,781,942 1,781,942
during the nine months ended
June 30, 1996 (unaudited)
Issuance of common stock 4,355,000 43,550 42,998,858 43,042,408
(unaudited)
Exercise of stock options 216,497 2,165 449,620 451,785
---------- -------- ----------- ----------- ----------- -----------
(unaudited)
Balance - June 30, 1996 24,934,154 $249,342 $44,974,405 ($5,939,805) $30,733,583 $70,017,525
(unaudited) ========== ======== =========== ============ =========== ===========
</TABLE>
See Accompanying Notes
<PAGE>
<TABLE>
<CAPTION>
May & Speh, Inc.
Statements of Cash Flows
(unaudited)
Nine Months Ended June 30,
1996 1995
--------------------------
<S> <C> <C>
Cash flows from operating activities:
Net income $7,097,127 $6,027,598
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization 1,150,883 857,263
Deferred income taxes (39,000)
ESOP principal payments 1,781,942 1,799,338
Changes in assets and liabilities:
Accounts receivable, net (3,380,132) (1,174,078)
Prepaid expenses and other current assets (654,407) (176,112)
Income taxes payable/refundable 1,699,233 (14,000)
Accounts payable and accrued expenses 496,444 1,629,433
Other (744,744) 111,761
---------- ---------
Net cash provided by operating activities 7,446,346 8,798,681
---------- ---------
Cash flows from investing activities:
Purchases of property and equipment (4,130,351) (5,962,843)
Purchases of marketable securities (29,502,564) (129,501)
Sales of marketable securities 12,848,407 400,000
Software development costs capitalized (2,835,785)
Increase in cash surrender value of insurance (55,500) (55,500)
Other 181,984 (266,993)
---------- ---------
Net cash used in investing activities (23,493,809) (6,014,837)
---------- ---------
Cash flows from financing activities:
Proceeds from line of credit (1,250,000)
Proceeds of long-term obligations 10,250,000
Repayments of long-term obligations (2,576,367) (8,470,708)
Proceeds from issuance of common stock 43,489,905 (202,371)
---------- ----------
Net cash provided by financing activities 40,913,538 326,921
---------- ----------
Net change in cash and cash equivalents 24,866,075 3,110,765
Cash and cash equivalents:
Beginning of period 6,713,581 1,642,561
---------- ----------
End of period $31,579,656 $4,753,326
=========== ==========
</TABLE>
See Accompanying Notes
<PAGE>
May & Speh, Inc.
Notes to Financial Statements
(1) Basis of Presentation.
The financial statements as of June 30, 1996 and for the three and nine
month periods then ended are unaudited and reflect all adjustments
(consisting only of normal recurring adjustments) which are, in the opinion
of management, necessary for the fair presentation of the financial
position and operating results for the interim periods. Certain information
and footnote disclosures normally included in financial statements prepared
in accordance with generally accepted accounting principles have been
condensed or omitted pursuant to the rules and regulations of the
Securities and Exchange Commission (the "Commission"). Therefore, the
financial statements should be read in conjunction with the Financial
Statements and Notes thereto contained in the Company's Registration
Statement on Form S-1 (No. 33-98302), as amended, filed with the Commission
on October 18, 1995. The results of operations for the three and nine
months ended June 30, 1996 are not necessarily indicative of the results
for the entire fiscal year.
(2) Initial Public Offering.
On March 29, 1996, the Company completed an initial public offering of
3,350,000 shares of the Company's common stock, par value $0.01 per share
(the "Common Stock"). Certain stockholders of the Company sold an
additional 3,350,000 shares of Common Stock in the offering. In addition,
on April 24, 1996, the Company completed the offering of an additional
1,005,000 shares of Common Stock that were subject to an over-allotment
option granted to the underwriters of the initial public offering. The
total net proceeds to the Company were approximately $43.5 million after
deducting underwriting discounts and commissions and offering expenses.
(3) Recent Developments.
Effective July 1, 1996, the Company acquired all of the outstanding capital
stock of GIS Information Systems, Inc. ("GIS"), a provider of data
processing outsourcing services based in Oak Brook, Illinois. The Company
acquired GIS from Faneuil, Inc. ("Faneuil"), a Boston based direct
marketing services company and a wholly owned subsidiary of Faneuil ISG,
Inc. The purchase price paid by the Company was approximately $19 million
($16 million in cash at closing plus $3.1 million of deferred payments,
subject to adjustment), plus a warrant to purchase 180,000 shares of Common
Stock at a price of $16.51 per share. As a result of the acquisition, GIS
became a wholly owned subsidiary of the Company. The Company and Faneuil
also entered into a Services Agreement dated July 1, 1996 pursuant to which
the Company will provide up to $5 million of direct marketing and
outsourcing services to Faneuil and its affiliates during the five year
period ending June 30, 2001.
Effective June 16, 1996, the Company entered into a capital lease
arrangement in connection with its upgrade of certain mainframe computer
equipment utilized in its data center facility. An initial down payment of
$1.3 million was paid on June 16, 1996. The remaining balance of
approximately $10 million will be paid in 63 monthly installments through
September 2001.
<PAGE>
Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations
In addition to historical information, the following discussion contains
forward-looking statements that are subject to risks and uncertainties that
could cause actual results to differ materially from those anticipated,
including, but not limited to, renewal of customer and supplier contracts
by GIS (as defined below) as they expire on terms and conditions favorable
to the Company and GIS, integration of operations of the Company and GIS,
changes in technology, and the risks and uncertainties described in reports
and other documents filed by the Company with the Securities and
Exchange Commission, including the Prospectus dated March 26, 1996 included
in the Company's Registration Statement on Form S-1 (File No. 33-98302).
Results of Operations
Three Months Ended June 30, 1996 Compared to the Three Months Ended June
------------------------------------------------------------------------
30, 1995
--------
Net revenues increased to $20.0 million for the three months ended June 30,
1996 from $16.1 million for the three months ended June 30, 1995, an
increase of $3.9 million or 24%. The Company's direct marketing services
revenues increased to $15.7 million for the three months ended June 30,
1996 versus $13.0 million for the three months ended June 30, 1995, an
increase of 21%. Of this increase, $0.6 million is attributable to the
establishment of the Company's Credit Strategy Management ("CSM")
Division which provides predictive modeling and analysis and related
services. The Company's CSM Division was established effective February 1,
1996 in connection with its Asset Purchase Option Agreement and Service
Agreement with Credit Strategy Management, Inc., based in Atlanta, Georgia.
The Company's data processing outsourcing services revenues increased to
$4.3 million for the three months ended June 30, 1996 from $3.1 million for
the three months ended June 30, 1995, an increase of 37%.
Wages and benefits expenses increased to $5.8 million for the three months
ended June 30, 1996 from $5.4 million for the three months ended June 30,
1995, an increase of 9%. The increased expenses reflect the net addition of
34 employees as a result of the Company's continued expansion of business
volume and strengthening of its infrastructure.
Services and supplies expenses increased to $1.7 million for the three
months ended June 30, 1996, from $1.1 million for the three months ended
June 30, 1995, an increase of 53%. Services and supplies generally consist
of outsourced data entry services, general supplies, contract labor and
costs related to the use of outside consultants. This increase resulted
primarily from outsourcing of technical support and data entry services and
the use of outside consultants to improve productivity and to re-engineer
certain work flow processes.
Rents, leases and maintenance expenses increased to $5.0 million for the
three months ended June 30, 1996 from $3.6 million for the three months
ended June 30, 1995, an increase of 40%. The increase was primarily due to
leasing of computers and computer peripheral hardware.
<PAGE>
Depreciation and amortization expenses increased to $0.4 million for the
three months ended June 30, 1996 from $0.3 million for the three months
ended June 30, 1995, an increase of 24%. The increase was primarily
attributable to continued investment in technology.
Other operating expense increased to $1.6 million for the three months
ended June 30, 1996 from $1.3 million for the three months ended June 30,
1995, an increase of 23%. The increase was primarily attributable to
variable costs relating to several customer contracts.
Research and development costs representing primarily wages and benefits
for information technology staff increased to $0.6 million for the three
months ended June 30, 1996 from $0.5 million for the three months ended
June 30, 1995, an increase of 15%. The Company's research and development
expenses relate primarily to new product development activities which
cannot be capitalized. Total new product development costs, including
capitalized costs, increased to $1.9 million for the three months ended
June 30, 1996 from $0.8 million for the three months ended June 30, 1995,
an increase of 135%.
Income taxes increased to $2.0 million for the three months ended June 30,
1996 from $1.3 million for the three months ended June 30, 1995. The
Company's effective tax rate was 39.7% for the three months ended June 30,
1996 and 37.3% for the three months ended June 30, 1995.
Nine Months Ended June 30, 1996 Compared to the Nine Months Ended June 30,
--------------------------------------------------------------------------
1995
----
Net revenues increased to $55.2 million for the nine months ended June 30,
1996 from $45.7 million for the nine months ended June 30, 1995, an
increase of $9.5 million or 21%. Of the increase, $6.8 million was
attributable to services provided to new clients and the remainder was
attributable to increased demand for services by existing clients. The
Company's direct marketing services revenues increased to $42.7 million for
the nine months ended June 30, 1996 versus $36.0 million for the nine
months ended June 30, 1995, an increase of 19%. Of this increase, $1.1
million is attributable to the establishment of the Company's CSM Division.
The Company's data processing outsourcing services revenues increased to
$12.4 million for the nine months ended June 30, 1996 from $9.7 million for
the nine months ended June 30, 1995, an increase of 28%.
Wages and benefits expenses increased to $17.5 million for the nine months
ended June 30, 1996 from $15.7 million for the nine months ended June 30,
1995, an increase of 11%. The increased expenses reflect the net addition
of 34 employees as a result of the Company's continued expansion of
business volume and strengthening of its infrastructure.
Services and supplies expenses increased to $4.7 million for the nine
months ended June 30, 1996 from $3.0 million for the nine months ended June
30, 1995, an increase of 58%. Services and supplies generally consist of
outsourced data entry services, general supplies, contract labor and costs
related to the use of outside consultants. This increase resulted
principally from outsourcing of technical support and data entry services
and the use of outside consultants to improve productivity and to re-
engineer certain work flow processes.
Rents, leases and maintenance expenses increased to $13.1 million for the
nine months ended June 30, 1996 from $10.1 million for the nine months
ended June 30, 1995, an increase of 29%. The increase was primarily due to
leasing of computers and computer peripheral hardware.
<PAGE>
Depreciation and amortization expenses increased to $1.2 million for the nine
months ended June 30, 1996 from $0.9 million for the nine months ended June 30,
1995, an increase of 34%. The increase was primarily attributable to continued
investment in technology.
Other operating expenses increased to $4.9 million for the nine months ended
June 30, 1996 from $3.6 million for the nine months ended June 30, 1995, an
increase of 38%. The increase was primarily attributable to variable costs
relating to several customer contracts.
Research and development costs representing primarily wages and benefits for
information technology staff increased to $1.8 million for the nine months ended
June 30, 1996 from $1.4 million for the nine months ended June 30, 1995, an
increase of 34%. The Company's research and development expenses relate
primarily to new product development activities.
Income taxes increased to $4.7 million for the nine months ended June 30, 1996
from $3.6 million for the nine months ended June 30, 1995. The Company's
effective tax rate was 39.7% for the nine months ended June 30, 1996 and 37.3%
for the nine months ended June 30, 1995.
Liquidity and Capital Resources
- -------------------------------
The Company's working capital increased to $58.5 million as of June 30, 1996
from $16.5 million as of September 30, 1995. This increase resulted principally
from the Company's initial public offering in March 1996 (including the exercise
of an underwriters' over-allotment option in April 1996), resulting in net
proceeds of approximately $43.5 million to the Company. The Company's investment
policy is to invest in marketable, investment-grade debt instruments of the U.S.
Government or tax-free municipal bonds. The Company's investments typically have
maturities of three years or less. The Company historically limits its
concentration of investments in individual municipalities to $500,000 or less.
As of June 30, 1996, the Company's net accounts receivable were $18.8 million,
an increase of 22% over the previous fiscal year end. This increase reflects
additional business completed and billed during May and June 1996.
The Company has available a $2.0 million revolving credit facility. There are
no outstanding borrowings under this credit facility. Borrowings under a $12.0
million real estate loan are being repaid over a ten year period with interest
at 8.5%. Maximum borrowings during the nine months ended June 30, 1996 under
these credit facilities were $11.4 million. The Company entered into a loan at
the time of the formation of the Company's Employee Stock Ownership Plan, which
currently has an outstanding balance of $5.9 million. Borrowings under this
ESOP loan are being repaid through December 31, 1998 with interest at 9.3% on
the fixed rate portion of the loan ($4.6 million at June 30, 1996) and at 80% of
the lender's prime rate for the floating rate portion of the loan ($1.3 million
at June 30, 1996), currently 6.6%.
<PAGE>
Effective June 16, 1996, the Company entered into a capital lease
arrangement in connection with its upgrade of certain mainframe computer
equipment utilized in its data center facility. An initial down payment
of $1.3 million was paid on June 16, 1996. The remaining balance of
approximately $10 million will be paid in 63 monthly installments
through September 2001.
Recent Developments
-------------------
As reported in the Company's Current Report on Form 8-K dated July 18,
1996 (the "Form 8-K"), effective July 1, 1996, the Company acquired
all of the outstanding capital stock of GIS Information Systems, Inc.
("GIS"), a provider of data processing outsourcing services based in Oak
Brook, Illinois. The Company acquired GIS from Faneuil, Inc.
("Faneuil"), a Boston based direct marketing services company and a
wholly owned subsidiary of Faneuil ISG, Inc. The purchase price paid by
the Company was approximately $19 million ($16 million in cash at
closing plus $3.1 million of deferred payments, subject to adjustment),
plus a warrant to purchase 180,000 shares of the Company's common stock
at a price of $16.51 per share. As a result of the acquisition, GIS
became a wholly owned subsidiary of the Company. The Company and Faneuil
also entered into a Services Agreement dated July 1, 1996 pursuant to
which the Company will provide up to $5 million of direct marketing and
outsourcing services to Faneuil and its affiliates during the five year
period ending June 30, 2001.
On or prior to October 1, 1996, the Company will file an amendment to
the Form 8-K with audited historical financial statements of GIS and pro
forma financial statements setting forth the combined financial results
of the companies. The GIS acquisition is expected to contribute
positively to the Company's revenue and earnings. Based upon budgets
prepared by GIS management and discussions with GIS management at the
time of the acquisition, the Company has estimated fiscal fourth quarter
revenue from GIS to be approximately $2.5 million to $3 million with an
operating margin ranging from 17% to 19%. Company management has
indicated that it is comfortable with the $2.5 million revenue and 17%
operating margin estimates. Future financial results will be offset by
the corresponding loss of interest income from the approximately $16
million in cash paid at closing. Based upon the budgets and discussions
referred to above, the Company has estimated fiscal 1997 revenue from
GIS to be approximately $12 million (plus any revenue generated by the
Company from the Services Agreement described above) and an operating
margin of 17%.
<PAGE>
PART II--OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits.
2 Stock Purchase Agreement dated July 1, 1996 by and between
the Registrant, Faneuil, Inc. and Faneuil ISG, Inc.,
including the following Exhibits: 2.5(a)(iii) Form of
Opinions of Seller's Counsel; 2.5(a)(iv) Form of
Disaffiliation Tax Sharing Agreement; 2.5(b)(ii) Form of
Warrant; 2.5(b)(iv) Form of Opinion of Registrant's Counsel;
2.5(b)(v) Form of Services Agreement; 2.5(c) Form of
Employment Agreement; 2.5(d) Form of Stock Option Agreement;
10.8 Form of Set-Off Escrow Agreement (incorporated by
reference to Exhibit 1 to the Registrant's Current Report on
Form 8-K dated July 18, 1996).
10 Third Amendment to the Term Loan Agreement between the
Registrant and Harris Trust and Savings Bank, dated July 17,
1996 (incorporated by reference to Exhibit 3 to the
Registrant's Current Report on Form 8-K dated July 18,
1996).
27 Financial Data Schedule.
(b) Reports on Form 8-K.
The Company filed a Current Report on Form 8-K dated July 18,
1996 reporting the acquisition of GIS pursuant to Item 2 of the
form and incorporating by reference under Item 5 thereof a press
release issued July 18, 1996 announcing the acquisition. The
financial information required to be filed under Item 7 of that
form, which was not available at the time of filing of the Form
8-K, will be filed by amendment in accordance with the rules of
the Securities and Exchange Commission.
<PAGE>
EXHIBIT INDEX
Sequentially
Exhibit Numbered
Number Exhibit Page
2 Stock Purchase Agreement dated July 1, 1996 by
and between the Registrant, Faneuil, Inc. and
Faneuil ISG, Inc., including the following
Exhibits: 2.5(a)(iii) Form of Opinions of Seller's
Counsel; 2.5(a)(iv) Form of Disaffiliation Tax
Sharing Agreement; 2.5(b)(ii) Form of Warrant;
2.5(b)(iv) Form of Opinion of Registrant's
Counsel; 2.5(b)(v) Form of Services Agreement;
2.5(c) Form of Employment Agreement; 2.5(d)
Form of Stock Option Agreement; 10.8 Form of
Set-Off Escrow Agreement (incorporated by reference
to Exhibit 1 to the Registrant's Current Report on
Form 8-K dated July 18, 1996).
10 Third Amendment to the Term Loan Agreement between
the Registrant and Harris Trust and Savings Bank,
dated July 17, 1996 (incorporated by reference to
Exhibit 3 to the Registrant's Current Report on
Form 8-K dated July 18, 1996).
27 Financial Data Schedule
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND> THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM
THE FINANCIAL STATEMENTS INCLUDED IN THE COMPANY'S QUARTERLY REPORT ON FORM 10-Q
FOR THE QUARTER ENDED JUNE 30, 1996 AND IS QUALIFIED IN ITS ENTIRETY BY
REFERENCE TO SUCH FINANCIAL STATEMENTS
</LEGEND>
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> SEP-30-1996
<PERIOD-START> OCT-01-1995
<PERIOD-END> JUN-30-1996
<CASH> 31,579,656
<SECURITIES> 18,542,827
<RECEIVABLES> 18,783,664
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 72,702,307
<PP&E> 38,199,681
<DEPRECIATION> 8,406,671
<TOTAL-ASSETS> 108,057,546
<CURRENT-LIABILITIES> 14,222,769
<BONDS> 22,901,252
0
0
<COMMON> 249,342
<OTHER-SE> 69,768,183
<TOTAL-LIABILITY-AND-EQUITY> 108,057,546
<SALES> 0
<TOTAL-REVENUES> 55,173,175
<CGS> 0
<TOTAL-COSTS> 43,094,558
<OTHER-EXPENSES> 315,490
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 11,763,127
<INCOME-TAX> 4,666,000
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 7,097,127
<EPS-PRIMARY> .30
<EPS-DILUTED> .30
</TABLE>